- Earnings Per Share (EPS): Northern Trust reported an EPS of $2.26 for the fourth quarter, surpassing the estimated $2.00. This is a significant increase from the previous year’s 52 cents.
- Credit Loss Recovery: The company saw a recovery of $10.5 million in credit losses, compared to a provision of $11.0 million the previous year. The estimated provision was $6.57 million.
- Non-Interest Expenses: These expenses totaled $1.38 billion, reflecting a slight decrease of 0.9% compared to last year, against the estimated $1.39 billion.
- Return on Equity and Assets: Return on average common equity rose to 15.3% from 4% last year. Return on average assets increased to 1.24%, up from 0.33% the previous year.
- Assets Under Management and Custody: Assets under custody/administration reached $16.79 trillion, marking a 9% increase. Assets under custody alone saw a 12% rise to $13.35 trillion but fell short of the $13.87 trillion estimate. Similarly, assets under management increased by 12% to $1.61 trillion, which was below the expected $1.67 trillion.
- Trust and Investment Fees: These fees amounted to $1.22 billion, reflecting a 12% increase and meeting estimates.
- Tax Rate: The effective tax rate was 23.4%, higher than last year’s 22.4% but lower than the estimated 24%.
- FTE Revenue: Stood at $1.97 billion, which is a 26% year-over-year increase.
- Net Interest: The net interest margin FTE slightly increased to 1.71% from 1.68% quarter-over-quarter, outperforming the estimate of 1.64%. Net interest income FTE was $574.3 million, a 0.9% quarterly increase, exceeding the estimated $554.8 million.
- Stock Recommendations: The company received 2 buy ratings, 13 hold ratings, and 2 sell ratings.
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A look at Northern Trust Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 4 | |
| Resilience | 5 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 4.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Based on the Smartkarma Smart Scores, Northern Trust Corporation appears to have a promising long-term outlook. With strong scores in Value, Dividend, Growth, Resilience, and Momentum, the company seems to be well-positioned to perform well in various aspects. Northern Trust‘s focus on investment management, asset administration, and banking solutions for a wide range of clients, including corporations and affluent individuals, provides a solid foundation for continued success.
As a financial holding company, Northern Trust Corporation’s robust performance across multiple key factors bodes well for its future prospects. The company’s high scores in Resilience and Momentum suggest a stable and growing business, while its solid ratings in Value, Dividend, and Growth indicate strong fundamentals and potential for sustained growth. Northern Trust‘s core banking operations further solidify its position in the financial services industry, enhancing its overall outlook for the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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